As the owner of Tobalá, a Michelin guide restaurant in Riverdale inspired by the vibrant flavors of Oaxaca, Mexico, I know firsthand the challenges of building a business in New York City. Bringing Tobalá to my neighborhood of Riverdale in the Bronx has been both a labor of love and a lesson in resilience. It’s a dream to introduce my neighbors to the cuisine my family and I discovered during our travels, but the journey has not been easy, particularly when it comes to finances.
When we opened Tobalá, I had to take out multiple high-interest loans just to get the doors open. Together with my wife, who has a background in finance, we navigated the tough landscape of start-up funding. Traditional lenders were quick to turn us away. Despite our experience with a prior restaurant and a strong and stable financial foundation, including a solid income and credit score, we didn’t have enough collateral or assets to secure the low-interest loans that bigger businesses might have. Instead, we were left with loans with daunting interest rates and merchant cash advances, a type of financing that provides quick access to capital but comes with high costs and financial
pressure. This meant our total loan debt came up to roughly $600,000 and we were paying around $30,000 each month, just to cover the payments, on top of payroll, food and operating costs.
Anyone who owns a restaurant knows that margins are thin, especially when you’re starting out. In strong months, we bring in about $200,000 in sales, but that doesn’t stretch far enough to cover all expenses, especially with loan payments taking such a large share. For the two years that Tobalá has been open, we’ve operated on a razor-thin line, juggling payments, dipping into personal savings and often going into the red just to keep the business afloat. This isn’t a unique story among small business owners—it’s the reality that many of us live with each day.
That’s why my experience with the Bronx Economic Development Corporation (BXEDC) has been nothing short of transformative. I was first introduced to BXEDC by a banker who, while unable to offer a loan himself, pointed me toward this local organization that provides low-interest loans specifically to businesses like mine. I can’t overstate the relief that comes with being able to refinance high-interest debt into a more manageable loan through BXEDC. For the first time, we’re not simply scrambling to survive from one week to the next. Instead, we’re able to plan for the future, confident that we can keep Tobalá going strong.
I hope that my story encourages other small business owners in the Bronx to look into organizations like BXEDC. This borough has always been a place where working families and local businesses hold the community together, and I’m grateful to have found support right here in my own backyard. My wish is that more business owners in the borough learn about and take advantage of the resources that BXEDC has to offer earlier in their journey. Access to capital can be a game-changer for businesses like mine, helping us move from merely surviving to thriving.
As we look forward, I’m optimistic not only for Tobalá’s future, but for the Bronx as a whole. With organizations like BXEDC creating pathways to sustainable growth, small businesses can continue to contribute to the community and help the Bronx retain its unique character. Let’s make sure resources like these are accessible and known to everyone trying to make a difference in the Bronx.
Billy Mercader is the Co-Owner of Tobalá, a Michelin guide restaurant in the Riverdale neighborhood of the Bronx.
